WorldWideFuture Weblog

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Free cars! An answer to the economic recession

The so called Big Three North American auto producers may soon receive extraordinary monies from the governments of the United States and Canada to pull them out of bankruptcy.  The bailout is $14 Billion in the US, $3.3 Billion in Canada. A huge amount of money to throw at companies who have mismanaged any kind of monies they already had.

The Big Three claim that the money is needed because people aren’t buying their cars because of the recession or economic downturn or whatever you want to call it. Beyond considerations that maybe people are not buying their cars because of perceived lower quality or lower fuel efficiency compared to “foreign” makes, then I think there is a better solution than giving these corporations bailout money.

The real answer is free cars.

Buy new cars for people. Use the proposed bailout money to buy cars and give them to people in need, or people whose cars are over five years old or who currently have gas guzzlers. Kill two birds with one stone, so to speak. Better the environment and keep the factories producing.

Giving money directly to the corporations won’t keep the factories going, because people still won’t be buying cars. Just where will this money go? Who will they write checks to? By using the money to buy cars directly, then you will stimulate the industry and provide the desperately needed jobs of over a million people. At the same time, you will remove some older cars off the road and replace them with more efficient new cars. I imagine $17 Billion will buy a lot of cars and will keep the factories going quite a lot longer than providing the money to sinking industries who will still be stuck with non-moving stock.

The free economy is the future. See the February Wired magazine’s article from Chris Anderson: Free! Why $0.00 Is the Future of Business.

While we are it, use the other trillion dollars of financial bailouts to buy people houses and clothes and food instead of shelling out taxpayer money to the financial wizards who have already shown they can’t handle it. That will really stimulate the economy.

bailoutyk2(Source unknown. Just a little levity, I don’t subscribe to the idea that the Big Three make inferior products!)

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December 19, 2008 Posted by | economy | , , , , , , , | 4 Comments

Show me the money!

Everyone seems to be talking about billions in bailout money…for everyone from financial institutions to car manufacturers. The US is ready to dump billions…Canada, Europe, Japan, China, etc. ready to follow. Brings to mind some interesting questions…

Where is this money coming from? If this money already existed, why wasn’t it used to pump up the economy or help rebuild infrastructure in the first place? How can all these governments, crying the economic blues for so long, have all this incredible supply of money just sitting there?

If all this money is virtual, isn’t virtual money the problem in the first place?

If this money doesn’t exist, which generation is going to pay for the trillions in bailout money?

Here we have the case of giant corporations, who have paid exorbitant funds for the acquisition and retention of financial “experts”, only to be brought down to the brink by negligence or basic lack of foresight. How can we expect them to utilize the money wisely, and who do you really write the check to?

While I have not been scanning the net deeply, I have been watching the TV news and reading the odd newspaper. Seems to be some really important questions to answer, but like many instances in the recent past (like invading Iraq) we don’t have a viable “fifth estate” asking them. This does not bode well for the world wide future. The biggest question: where is the media when you need it?

December 18, 2008 Posted by | economy, future, politics | , , , , , | 3 Comments